City Union Bank Q2 net jumps 15% at Rs 108 cr

City Union Bank today reported a 15 per cent jump in net profit at Rs 107.84 crore for the second quarter ended September 30, mainly due to drop in cost of deposits.
The Tamil Nadu-based bank had recorded a net profit of Rs 93.74 crore during the same period of previous year, City Union Bank Managing Director and CEO N Kamakodi said.
"Financial years 2014 and 2015 have been very challenging for us. Our growth moderated to almost single digits. Majority of the growth happened because the cost factor is very much in control and there is a drop in cost of deposits. All these factors cumulatively led to a 15 per cent increase", he told reporters here.

For the April-September period, net profits of the private sector lender rose 13.54 per cent to Rs 219.40 crore from Rs 193.24 crore during the year-ago period.
Total income of the bank for July-September quarter rose to Rs 829.44 crore from Rs 772.99 crore during corresponding period of 2014-15 fiscal.
For the half year, total income of the bank increased to Rs 1,640.38 crore from Rs 1,527.02 crore during same period of previous year.

During the second quarter, gross Non-performing Assets (NPAs) rose to 2.10 per cent from 2 per cent at the end of second quarter of 2014-15.
Net NPA of the bank also increased to 1.36 per cent from 1.30 per cent of the total assets.

Responding to a query, Kamakodi said the cost of deposits which was 8.22 per cent as of September 30 last year declined to 7.69 per cent as of September 30, 2015.
On the outlook for this fiscal, he said, "we expect to maintain 12-15 per cent growth in terms of credit growth and about 10-12 per cent in terms of profits after tax".
The bank would be focusing more on small and medium enterprises, trading and agriculture, he said.
On the expansion of branches, he said the bank would soon open 500th branch in Southern region.
"Currently our bank's branches are 486.. We will be opening 500th branch soon. By this financial year we should have 525 branches..", he said.